The lost unions

Fri, Nov 22nd 2013, 10:58 AM

The teachers' union is upset. The unions at the Bahamas Electricity Corporation (BEC) are upset. The customs and immigration union is upset. All have complained about benefits and pay. All want something else from the government.
As a result of the 2008 recession, government spending increased to compensate for the falloff in private sector participation in the economy. Government debt was at $2.67 billion in the 2007/08 fiscal year. It has continued to grow. It is projected to be $4.9 billion when the government implements value-added tax (VAT) next July.
The government fears a debt crisis. Our situation is not critical now, but we are getting closer and closer to the problem zone. The Progressive Liberal Party (PLP) administration is risking its future with VAT. But, nonetheless, it thinks the country's situation is so precarious that it must do something drastic to bring The Bahamas' debt situation under control.
Leslie Miller, BEC's executive chairman, is threatening to fire workers at that corporation if they strike over their demands.
The thing the unions must understand is that the government has no money. It is attempting to ward off a debt crisis. The unions must be sensitive to the concerns of the nation as a whole, rather than their narrow interests.
Businessman Franklyn Wilson put it well in an interview with The Nassau Guardian this week. He said unions in the country must "get real".
"There is no money," Wilson said. "There is no point clamoring about give me more, more, more, more. It is not there. So all the union leaders are not doing themselves or the country any favor by clamoring for what is not there."
The entire country is in a debate over tax reform. Even the private sector has conceded that the state needs some additional revenue, along with spending cuts, to close the massive deficits that have become the norm. All reasonable people are putting their thoughts toward stabilizing the national economic situation; and the unions are threatening to strike over what they want.
We are certain the majority of Bahamians do not empathize with the unions. They are out of step with the realities of this country. The bloated contracts they have been able to coerce out of political parties while in government have helped contribute to the financial mess The Bahamas is in today.
The government does have a legal responsibility to honor the contracts it already has with these unions and the workers they represent. However, going forward, the government should not add on to what it has already given. It should, instead, negotiate more modest contracts with workers taking into consideration the challenges of these times. There should be no more automatic salary and benefit increases in new contracts. A firm stance must be taken with public sector workers and unions.

Click here to read more at The Nassau Guardian

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